7
July 31, 2020
Proprietary
Unemployment Does not Currently Correlate to Wages
While low unemployment was creating wage pressure pre-Covid due to scarcity of skills, current surge in
unemployment coupled with legislative aid minimizes any wage reversal that was anticipated.
✓ Outside of industries most impacted* by Covid, current unemployment numbers are
fueled predominantly by low-wage jobs
✓ IT Skills, less than 1% unemployment prior to pandemic, have continued to be in
demand and have seen the greatest pressure for wage increases
✓ Recruitment of candidates already employed or those working remotely, often requires
wage increase to recruit successfully
✓ Childcare Gap is ongoing challenge for over 1/3
rd
of workforce, requiring shift flexibility,
increased income, or other incentives
✓ Rather than wages declining over time as pandemic recedes, future compensation is
likely to continue to account for job responsibilities such as onsite work or travel
requirements
*Travel, Leisure, Energy, and Hospitality were
impacted more than all other industries combined